Iraq negotiates liquified gas deal with Algeria
Exports are anticipated to start once Iraq completes the necessary infrastructure, and the agreement is anticipated to be publicized in no more than two months, according to Attaqa News.
In order to facilitate LNG imports, Iraq is now developing the required infrastructure at the Khor Al-Zubair port in the southern Iraqi province of Basra. The construction process might take around four months.
Iraq and Algeria's (LNG) deal is expected to support Baghdad's electricity sector in the summer of 2025 or even early in the winter.
With annual volumes projected to be one million tons, the agreement will be medium-term. However, negotiations haven't settled on the exact amount yet.
In order to meet the needs of power plants in the country, Iraq has relied on gas imports from Iran. However, these supplies have ceased, and the government is now making constant efforts to receive gas supplies from other countries in addition to its ongoing projects to become self-sufficient in gas.
A deal to buy up to 20 million cubic meters of gas per day was inked by the Iraqi Ministry of Electricity and Turkmenistan last October.
The Iraqi Ministry of Electricity stated in early January that gas supplies from Turkmenistan will cover half of the demands of the country's power plants.
Iraq's Parliamentary Oil and Gas Committee revealed earlier in March that the government is taking measures to cover its gas requirements from the Gulf States to replace Iranian gas supplies following tighter US sanctions on Iran.
Baghdad will not be able to import the Iranian gas required to operate power plants around the country after the US Department of State said in a statement recently the US administration has ended a sanctions waiver that allowed Iraq to import energy from Iran.
As previously stated by Iraq's Electricity Minister Ziyad Ali Fadel, the arrangement will assist in guaranteeing that Iraq's gas-fired power plants receive the necessary fuel.
About 60 percent of Iraq's electricity is produced in gas-fired power facilities, according to Fadel.
In an attempt to reduce dependency on foreign suppliers, the Iraqi government is investing in domestic gas production projects, increasing gas imports, and diversifying energy sources.
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